Chevron ropes in Apache, Kuwait firm for Wheatstone project
23 Oct 2009
Apache Corporation and Kuwait Foreign Petroleum Exploration Co (KUFPEC) have teamed up with Chevron over the $25-billion Wheatstone gas project, leaving Australia's second-biggest oil and gas producer Woodside Petroleum looking elsewhere for extra gas supply sources for its Pluto expansion.
The deal will make Wheatstone the first LNG project in Australia to attract large volumes of third party supply gas.
The agreement was signed between Chevron Australia and Chevron with Apache Julimar Pty Ltd, a subsidiary of the Apache Corporation, and KUFPEC Australia (Julimar) Pty Ltd.
Under the agreement, Apache and KUFPEC will provide natural gas from their Julimar and Brunello fields, located in north-western Australia, to Train 1 and 2 of the Wheatstone Project.
Apache will assume a 16.25 per cent equity interest and KUFPEC an 8.75 per cent equity interest in the Chevron operated Wheatstone Project, located at Ashburton North near Onslow in the Pilbara region of Western Australia.
Apache and KUFPEC will have a combined capacity of 8.6 million tonnes each year.